Oil prices fell nearly 3 percent after weekly government data pointed to a marked increase in stocks of crude oil and distillates in the United States.
US Department of Energy reported that in the week from August 19 to 26 commercial oil stocks rose 2.28 million barrels to 525.87 million. Analysts had expected a growth of only 1.31 million barrels. Oil reserves in Cushing terminal fell by 1 million barrels to 63.9 million barrels. Gasoline inventories fell last week by 691 thousand. barrels to 232.004 million barrels. Experts predicted a decline of 1 million barrels. Meanwhile, distillate stocks rose by 1.496 million barrels to 154.753 million barrels. Analysts expected an increase of 300,000 barrels. The utilization of refining capacity increased by 0.3% to 92.8%. Analysts had expected a decline of 0.4%. US domestic oil production dropped to 8.488 million. barrels per day versus 8.548 million. barrels per day from the previous week
Yesterday the American Petroleum Institute (API) reported that US crude stocks in the previous week rose to 0.942 million barrels, which is generally in line with expectations. The report also pointed to a decline in gasoline stocks of 1.65 million barrels and distillate stocks reduction, including diesel fuel, 800 thousand barrels.
The cost of the October futures for WTI fell to 45.01 dollars per barrel.
October futures price for North Sea petroleum mix of mark Brent fell to 47.24 dollars a barrel on the London Stock Exchange ICE Futures Europe.